Westerville Company reported the following results from last year's operations: Sales $ 1,200,000 Variable expenses 320,000 Contribution margin 880,000 Fixed expenses 640,000 Net operating income $ 240,000 Average operating assets $ 600,000 At the beginning of this year, the company has a $150,000 investment opportunity with the following cost and revenue characteristics: Sales $ 240,000 Contribution margin ratio 50 % of sales Fixed expenses $ 84,000 The company's minimum required rate of return is 15%. Required:
a. What is last year's margin?
b. What is last year's turnover?
c. What is last year's return on investment (ROI) ?
d. What is the margin related to this year's investment opportunity?
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